DailyPlay – Closing Trade (AAPL) – November 1st, 2021

Closing Trade

• AAPL– 6% Loss: Short Nov 19, 2021 149/155 Call Vertical @ $2.20 Debit

Despite AAPL’s initial gap down on Friday’s open, price rallied intraday with strong momentum. Our bearish thesis for Apple’s earnings play was based on supply-side constraints and deceleration in services revenue which was confirmed during the announcement. However, bullish price action after the gap lower on Friday has invalidated our thesis and we take this opportunity to close out AAPL for a limited loss. 

Prakash Vijayanath
Analyst at OptionsPlay